A division of
Overview of Singapore’s Public Housing
Mr Chionh Chye Khye
CLC Fellow
OVERVIEW
• Introduction & A Bit of History • Key Success Factors
Singapore:A City-State’s Challenges
5.40 Million
• Population of 5.535 mil • Land area of 719 km2 • 7,698 persons/km2 density
• Hi-rise hi-density living
Structure of Real Estate Market in Singapore
Housing Market
- Public
- Private
Home
Ownership
Rental Home
Ownership
Rental
Landed property, Condominium & ECs
1R / 2R / 3R / 4R / 5R / EF / Studio Apts
Primary Market
(HDB)
Secondary Market
(Resale)
Primary Market
Secondary Market
HISTORY: TURNING A CITY OF
SQUATTERS TO A HOME OWNING
SOCIETY
Housing Landscape: 1950s
City Fringe Squatters
Inner City Shophouse-cubicles
•Rapid Population Growth •Poor Housing Conditions •Severe Housing Shortage
Rural Villages/Farms
SIT 1927 to 1959
The Vision
“ My primary occupation was to give every citizen a stake in the country and its future… if
every family owned its home, the
country would be more stable… I
believe this sense of ownership was
vital for our new society… ”
Mr. Lee Kuan Yew,
Prime Minister of Singapore
Housing & Development Board
Established in Feb 1960
9
“Home Ownership for the People” Scheme
1964: Home Ownership for the People Scheme
• Targeted at lower-middle and middle-income households • Intended to give Singaporeans a stake in the country • Public Balloting conducted to allocate flats to applicants
• Low-interest government loans available to those who were not able to
afford outright purchase
© 2016 Housing & Development Board
Residents in Public Housing
Population (‘000)
4,500
3.9 million
3.2 million
4,000 3,500
Estimated
3,000 2,500 2,000 1,500 1,000
500
Resident
Population
Resident population in Public Housing
82% (2015) 23% (1964)
Estimated Resident
Population living in HDB Flats
0
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
© 2016 Housing & Development Board
Public Housing Today
• Over 80% of Singapore’s resident population lives in
HDB flats
• 95% own their homes
Social Class Integration: Variety of Housing Options within a neighbourhood
High
Private Property
Exec Condo
3Gen/ Executive/
5-room
Financial
Ability
4-room
3-room
2-room Flexi
HDB Flats
Rental flats
Low
© 2016 Housing & Development Board
The Transformation
1980s
1960s
2000s
1950s
The Pinnacle@Duxton
Punggol Waterway Terrace
Key Success Factors
• Land allocation for HDB housing through Land Acquisition Act • Government funding to HDB for development and for mortgage loans to purchasers
• Government’s emphasis on home ownership & affordability
• Emphasis on community building
• Focus on estate maintenance and upgrading • Favourable economic environment: high growth, low unemployment, longterm appreciation of housing values
Land AcquisitionAct
• The Land Acquisition Act allowed the government to acquire 17,692 hectares of land between 1959 and 1984
• This represented 30% of Singapore’s total land area (excluding reclaimed
land)
• Half of this land was given to HDB for public housing
• Land acquisition was done relatively cheaply and quickly which in turn allowed
Public Housing to be developed with low land costs and at a very fast pace
Central Provident Fund (CPF)
• The CPF was set up in 1955 as a retirement scheme with contributions from both the employer and employee
• Government sells bonds to CPF Board and uses fund to
finance development of public housing and infrastructures
• In 1968 CPF savings was allowed to be used for the purchase of HDB flats
• In 1981 CPF savings was: allowed for the purchase of private residential properties in Singapore
Why Home Ownership?
Provides an asset & a
store of
Provides a stake in the country value
Key
Benefits
Encourages
better
maintenance
Promotes rootedness
& belonging
Builds strong
work ethics
© 2016 Housing & Development Board
Current Range of Housing Subsidies
Income up to $12,000
Income up to $14,000
Resale Flats
(market value)
Executive
Condominiums
New Flat
(market discount)
Family Grant
($10k - $30k)
Proximity Housing
Grant ($20k)*
Family Grant
($30k)
Additional CPF Housing Grant
($5k to $40k)
Special CPF
Housing Grant
+
($5k to $40k)
Concessionary
Concessionary loan
loan
* There is no income ceiling
© 2016 Housing & Development Board
Keeping Development Costs Low
Land Cost - Land Acquisition Act (LAA)
• 1966 LAA – enabled state to compulsorily acquire land for
public purpose at a reasonable price
Construction Cost
• HDB cut red tape, broke cartels, ended payment delays & corruption, ended over-specification, raised productivity, instituted open tender and fair contract practices
• HDB built brick, sand and granite quarries, award bulk
contracts for steel bars and cement